CCR AutoBan has mandated Bank of America Merrill Lynch (BAML), Bradesco, BTG Pactual, Itau and JPMorgan to lead an international bond transaction, according to one of the mandated banks. Size and currency have yet to be determined though a global BRL is one option being considered. The Brazilian toll road operator was heard sounding out the US buyside via BAML early August. CCR AutoBan is a subsidiary of Companhia de Concessoes Rodoviarias (CCR), an infrastructure company that is involved in highway concession, passenger transportation and the environmental vehicular inspection sectors. CCR and its subsidiaries have yet to issue in the dollar markets, according to Dealogic data, though are frequent domestic issuers.
Category: Bonds
Posted inDaily Brief
Colombia Weighs Carry Costs
Colombia sees the US dollar market as providing the best opportunities, but is unlikely to tap the debt markets anytime soon, German Arce, Colombia’s head of public credit, tells LatinFinance. This comes after Arce and president Juan Manuel Santos met with Japanese banks this week to analyze a possible new Samurai bond. “A Samurai is a natural way of getting into the Asian market. There are discussions about cost and whether costs are reasonable to go back to the Samurai market. [For now] the dollar market is providing better opportunities,” says Arce. In theory, the sovereign has just $240m left in external financing, though it already has this covered and it is no rush to tap the market, or pre-finance the estimated $3bn in amortizations due next year. With rates still low in the dollar market, Colombia has been weighing the carry cost of raising money now against waiting until a later date. “As long as rates are low obviously the carry cost will be minimized,” Arce says.
Posted inDaily Brief
Ecopetrol Sits on Sidelines
Colombia’s Ecopetrol has no plans to issue additional equity or debt in either the international or local markets this year as the company has sufficient resources to fund capex and operations, CFO Adriana Echeverri tells LatinFinance. “Currently our [cash] position is $4.3bn and oil prices are way beyond our projected $65 dollars per barrel, so we are not requiring additional funding,” she says. The state-controlled oil producer has an $80bn capex plan for the 2011-2020 period, of which 65% will be funded with internal cash, 25% with debt and 10% equity, including funds raised in an equity follow-on last month. The recent follow-on fell short of its COP2.5trn target ($1.4bn), raising COP2.40trn, though the result has not altered the company’s plans. “The requirements for the company in local currency were COP2.5trn and the shortfall is not much so we are not thinking about additional equity,” Echeverri adds. The company has no timeline for its next round of equity sales, she says, noting the government still needs congressional approval to sell a 10% stake in Ecopetrol.
Posted inDaily Brief
Leasing Bancolombia Raises Local Bond
Leasing Bancolombia has sold COP400bn ($166m) in local bonds, upsizing from COP300bn. The arm of Bancolombia placed a COP79.8bn 2013 tranche paying DTF+1.85%, a COP95.3bn 2014 tranche paying IPC+3.45%, a COP101.5bn 2017 piece paying a 7.70% fixed rate, and a COP156.4bn 2022 portion paying IPC+4.54%. Total demand reached COP630.8bn. Bancolombia managed the sale, rated AAA on a national scale. Titulizadora Colombiana, BBVA Colombia and Banco Occidente are all slated to issue next week.
Posted inDaily Brief
Lojas Americanas Readies Bond
Brazilian retail chain Lojas Americanas plans to issue a BRL500m ($292m) domestic bond, on top of the BRL293m in convertible bonds it agreed to sell to BNDESPar last week. The BRL500m 7-year is to pay 113% of the DI rate, and will raise funds to replace debt due this year. A spokeswoman declines to identify the bank managing the sale, which is being sold under the rule 476 restricted format. Last week, the retailer agreed to sell BRL293m in 2017 convertible debentures to government development bank BNDES. The bonds to be purchased by the bank’s BNDESPar unit pay a fixed rate of 13.15%, and are convertible at a BRL19.25 per share price at any time. Americanas has also taken out a BRL442m credit line with BNDES. The retailer plans to use the BNDES funds for its organic expansion plan.
Posted inDaily Brief
Macquarie Closes LatAm Desk
Macquarie has closed its Miami office and shut down its Latin American fixed-income group, according to a person familiar with the matter. The group specialized in sales and trading for sovereign debt products. A company spokeswoman declines to comment.
Posted inDaily Brief
ICA Heard Engaging Investors
Mexico’s Empresas ICA is heard meeting bond investors in the US with Bank of America Merrill Lynch, according to market participants. The construction company is heard to be engaging a select group of investors with no solid deal talk, though the idea of issuing a $300-$350m bond is being considered to address debt profile. Moody’s put ICA’s Ba3 rating under review for a possible downgrade last month, citing higher-than-expected increases in debt leverage and working capital needs. In February, ICA raised $400m in 10-year NC5 bonds, following up with a $100m retap a week later.
Posted inDaily Brief
Leasing Bancolombia Set for Local Bond
Leasing Bancolombia is set to sell COP300bn ($166m) in local bonds today, upsizable to COP400bn. The arm of Bancolombia is able to select notes from among a 2013 tranche paying the DTF plus up to 1.95%, a 2014 tranche paying IPC plus up to 3,70%, a 2017 piece paying a 7,75% fixed rate, and a 2022 portion paying IPC plus up to 4,90%. Bancolombia is managing the sale, rated AAA on a national scale. Colombian DCM appears to remain active as other markets slow down on international volatility, at least for financial insitituions. Titulizadora Colombiana, BBVA Colombia and Banco Occidente are all slated for next week.
Posted inDaily Brief
Minerva Takes to the Road
Minerva has mandated Banco do Brasil, BTG Pactual, Goldman Sachs and Morgan Stanley to hold fixed-income investor meetings in Europe, the US, and Latin America starting today. The roadshow kicks off in Santiago with scheduled stops in Zurich and Geneva on Thursday and Los Angeles on Friday, before wrapping up in New York Monday. The visit follows Minerva’s recent upgrade to B2 from B3, and a recent BRL190m ($119m) convertible domestic bond issuance. The meatpacker is expected to make modest acquisitions in the near term and turn free cash flow positive in 2012. Minerva is rated B2/B/B+. It last visited the dollar market in January when it issued $250m in 2020 NC5 bonds through Goldman Sachs and Banco do Brasil.
Posted inDaily Brief
Pemex Postpones Domestic Jumbo
Pemex has postponed the sale of up to MXP15bn ($1.22bn) in domestic bonds planned for this week, say bankers managing the deal, because of poor market conditions. The multi-tranche deal has been put off until further notice. The state-owned oil producer was set to choose among 7-year floating-rate, 10-year fixed-rate and 15-year UDI-denominated bonds. Proceeds from the issue, rated AAA on a national scale, were to be used for investment purposes and to address existing debt. Banamex, BBVA Bancomer and HSBC are managing the deal. The Mexican state-owned oil company last came to the local market when it issued MXP10bn in 5-year bonds earlier this year.